Caesars Entertainment Furloughs 90% of U.S. Employees

Caesars Entertainment LogoOn Thursday, Caesars Entertainment announced that due to economic downfall caused by the coronavirus casino closures, they would be furloughing roughly 90 percent of its staff in the U.S.

This decision came on the heels of government officials extending shutdowns and social distancing guidelines. Originally, Nevada casinos were to be shut down for 30 days, scheduled to reopen April 16. Gov. Sisolak has since extended the shut down until April 30.

With their property closed, the financial impacts from the COVID-19 pandemic have prompted the company to temporarily move to a “minimum workforce needed to maintain basic operations.”

The furloughs will affect the company’s domestic employees, including corporate staff members.

Tony Rodio, Chief Executive Officer of Caesars Entertainment said the company has been taking “difficult but necessary steps to protect the company’s financial position and its ability to recover when circumstances allow us to reopen and begin welcoming our guests and employees back to our properties.”

When the furloughed employees have an opportunity to return to work, it might be under new ownership as reports have been circulating that Eldorado Resorts may be closing a $17.3 billion deal with Caesars come June.

Two Weeks Pay, PTO, and Health Care Premiums Paid

In an effort to help those employees who are being furloughed, the company will pay their first two weeks, at their current pay rate. Employees will then be able to utilize any paid time off after that check comes through.

For those employees who are under the Caesars health care plan, they will have their premiums covered until June 30, or until they return back to work.

Las Vegas Gaming Companies Who Are Paying Their Employees During Casinos Closures

Las Vegas Sands Founder, Chairman, and CEO Sheldon Adelson outlined his plans to pay his U.S. employees in a New York Post piece.

Adelson said that the company will be paying their 10,000 US employees, all of which who are out of work during this time, for the next two months. It’s an act of generosity and immense help for out-of-work employees, and Adelson is hoping other gaming executives will follow suit.

“The coming weeks will be tough, and the months that follow will be unsteady,” Adelson wrote. “To my fellow business leaders, let us lead by example.”

Wynn Resorts announced earlier this week that they would be paying their 15,000 workers in Las Vegas and Boston combined until May 15. Keeping employees on payroll allow their salaried, part-time, and hourly workers to receive two months-worth of wages from the date that Wynn properties closed.

Station Casinos announced that all hourly and salaried full-time workers will receive normal pay, as well as insurance benefits, until April 30.

Lastly, MGM Resorts will be utilizing its emergency relief fund to help their employees out during this challenging time. Currently, the fund has $4 million in it with gracious donation provided by the company, singer Bruno Mars, who has a Las Vegas residency this year, and Kirk Kerkorian, the estate of MGM founder.

Caesars Entertainment UK Fined £13 Million

Caesars Entertainment UK has been slapped with a £13 million dollar fine. Ouch.

Caesars Entertainment

This fine comes in relation to failures that relate to VIP schemes. And, it comes not long after online casino Betway was hit with an £11.6 million fine back in March.

Why Did Caesars Receive a Fine?

So, the main reason behind the find is that Caesars UK was found guilty of failings in their treatment of their VIP’s. The VIP’s are typically offered perks and other comps to entice them to spend more money.

However, the failure on Caesar’s part came in for neglecting to catch gambling addiction in some of their VIP’s. Such as allowing a customer to lose £323,000 in one year and gambling for five hours or more on more than 30 occasions.

Others also had fallen prey to gambling addiction. Unfortunately, there was a gambler that was very common to sign up to “self-exclude” from gambling had started again, and lost £240,000. Another gambler who was a nanny lost that reported she was borrowing money from family, and playing from her overdraft was had lost £18,000 in a year.

Neil McArthur, an executive of the Gambling Commission, had this to say:

“In recent times the online sector has received the greatest scrutiny around VIP practices but VIP practices are found right across the industry and our tough approach to compliance and enforcement will continue, whether a business is on the high street or online.”

Caesar’s Response

In response to the fine given by the Gambling Commission, Caesars UK said that they:

“acknowledges falling short of its standards and accepts the settlement reached with the British Gambling Commission”

What Can Caesars US Learn?

If there is any takeaway from this it’s hopefully that Caesars other brands can learn from these mistakes. While the actions of one brand certainly don’t reflect the actions of all, the responsibility does come down to Caesars as a whole in my opinion.

I believe the response to their actions was acceptable; however, I also believe there is more that can be done in the fight against problem gambling.

Right now, there isn’t much gambling action going on, as all US casinos have closed due to complications with the recent COVID-19 virus outbreak.

The Wrap Up

To close this up, I will say that I will do my best to keep you updated with news that develops in regards to Caesars and the Gambling Commission. Be sure to check back for more of my news here at BestUSCasinos.org.

Hotels Start to Prepare for LV Coronavirus Outbreak

The number of confirmed coronavirus cases has just exceeded 115,000. Several countries are now experiencing rapidly growing infection rates. In the United States alone, over 1,000 people have now tested positive for Covid-19. This week, hotels began taking new measures to better prepare for a LV coronavirus outbreak.

Image Of Coronavirus

It’s concerning news for those in Clark County (where a case has already been confirmed) and anyone interested in visiting Las Vegas. Today, we’re going to discuss some of the updates to this virus. We’ll also look at how Covid-19 may end up affecting the US gambling industry.

Let’s get into it!

Covid-19 Officially Named a Pandemic By the WHO

When the new coronavirus first began appearing in Wuhan, no one really knew how serious it would become. It wasn’t the first time a virus emerged in China. SARS, for example, was eventually killed off and many expected a similar scenario here.

Within a couple of weeks, it became clear that this was a virus unlike any other that we’ve seen. It has a unique ability to spread. Part of the reason for this is the ability for transmission between people before any symptoms have shown. It quickly began spreading to every single province in China and several nearby countries.

By early February, the virus was also present in many western countries. As the weeks progressed, more and more nations began announcing new cases of the virus. Experts began warning this could become a global pandemic.

About two weeks ago, Italy had three confirmed cases. Today, more than 12,000 individuals have tested positive and the entire country is under lockdown. This goes to show how devastating Covid-19 can be.

Today, the WHO has officially declared this virus a global pandemic. Some experts claim that in time, between 50-70% of the world’s population will become infected with the virus.

Officials in Las Vegas have feared growing infection rates in the city. This week, several major hotels began taking steps to prepare for a major LV coronavirus outbreak.

Is a LV Coronavirus Outbreak Inevitable?

Las Vegas is one of the most-visited cities in America. Millions of people fly in and out every single month and for that reason, some have expressed fears that it’s prime for coronavirus transmission. As of now, however, there have not been any major outbreaks seen in the city.

Some feel that it’s only a matter of time before many new cases are confirmed here. If that happens, it would be devastating to the city’s gambling industry.

If a real LV coronavirus outbreak takes place, all of the city’s major casino-resorts may be forced to temporarily shut down. That would cost the city’s casino companies millions of dollars every single day. We saw something similar take place in Macau.

The fact that thousands of people are crammed into such a small area on the Las Vegas Strip makes this city very likely for an outbreak. After new reports that the virus can be spread simply through breathing makes this even more likely. Health officials across the city have already begun preparing for a rise in infections.

It does seem that an outbreak is inevitable in Las Vegas. In reality, every city across the country is likely to see new infections in the coming months. How the country’s health services respond to the rise in cases is yet to be seen.

Las Vegas Hotels Began Covid-19 Preparations

This week, both Wynn Resorts and Caesars Entertainment announced new measures to deal with Covid-19. Caesars has taken several measures, including monitoring their employees’ health and better disinfectant measures for public areas. CEO Tony Rodio spoke to the media about these preparations to the media this week.

“We are committed to implementing recommendations from the health authorities to give you peace of mind as you visit our properties now and in the future,” he said. “The health and safety of our guests and employees will always be our most important consideration, especially in these challenging circumstances.”

Wynn Resorts has placed hand sanitizers throughout their Las Vegas hotels and now encourages any guests to self-quarantine in their room and call for support from the hotel desk, who will assess the situation. Any employees with symptoms of the coronavirus will immediately be placed on medical leave.

Matt Maddox released a statement, telling guests he wants Wynn Resorts’ hotels to be as safe as possible for guests.

“We are committed to doing everything we can to make Wynn and Encore a respite when you visit one of our resorts,” he said. “We’ve decided to raise our usual standards of cleanliness and health safety even higher … you can count on us to be a travel leader in meeting the challenge of the coronavirus. We assure you we will be attentive and vigilant so you can enjoy your vacation.”

It’s a very troubling time in the country. With the WHO’s decision to label the virus a pandemic, hope is that more countries begin taking more preventative steps to lower infection rates.

Stay tuned for more news on the situation over the next few months!

Caesars Entertainment Signs New Deal With MLS

Caesars Entertainment is one of the biggest casino companies in the country. Over the past couple of months, Caesars has been going through some massive changes. This week, news broke that the company officially secured a deal with an MLS team.Caesars Entertainment

It comes at an interesting time. This company is currently working to merge with Eldorado Resorts. Today, we’re going to discuss this upcoming merger, and look at how this new MLS deal will help the company in the future.

Let’s get into it!

2019 Was An Interesting Year for Caesars Entertainment

Caesars Entertainment has always been one of the biggest casino operators in the country. It was founded back in 1937 and grew extremely quickly. Over the past few decades, the company’s revenue began to fluctuate.

In 2014, rumors began to circulate about Caesars struggling to turn a profit. The next year, the company’s casino unit officially filed for Chapter 11 bankruptcy. That doesn’t mean it was closing down, though.

This company remains one of the largest casino operators in the country. Many analysts predicted that Caesars Entertainment would eventually merge with another major US casino company. In 2019, these predictions turned out to be correct.

In March of 2019, news broke that Caesars was merging with Eldorado Resorts. Of course, a deal of this magnitude takes a long time to complete. Eldorado Resorts is one of the most powerful gaming companies in the world.

Over the past few years, Caesars has begun to sell some of its major properties. This is all to help prepare its upcoming merge. This week, reports came out that the company signed a new deal with one of the country’s top sports leagues.

Caesars Entertainment is Now a Sponsor of an MLS Team

It’s not uncommon for casino companies to sign sponsorship deals with sports teams. In fact, many of the top US casino companies have inked deals with sports teams overseas as a way to break into a new country. Caesars just announced that it’s signed a sponsorship deal with D.C. United.

Moving forward, members of this popular MLS team will wear Caesars’ logo on their jerseys. It’s the first time that an MLS team has ever signed a deal with a US casino operator. It comes as part of the company’s strategy to become a leader in sports.

Jason Levien, Co-Chairman of D.C. United, commented on this new deal to the media this week.

“Partnering with Caesars provides us with a great opportunity to realize the dream of Audi Field being a year-round hub of entertainment and activity and is another strong indication that global brands continue to see value in partnering with our organization,” he said. 

This deal is also allowing Caesars to appear throughout the team’s stadium. The logo will likely be featured in Audi Field. Bar, restaurant, and several new entertainment concepts are also being considered.

More States Approve the Caesars-Eldorado Merger

The merger between Eldorado Resorts and Caesars Entertainment is the biggest ever between two casino companies. It’s costing $17.3 billion for these companies to combine. The deal cannot be finalized until the country’s various state gambling commissions give their approval.

Fortunately, many states around the country have already given this deal the green light. It’s fantastic news. Now, the deal has fallen into the hands of New Jersey’s gaming commission.

State commissions want to ensure that this merger does not create a monopoly. Once merged, these companies will control a huge number of casinos in different states. This includes several major gaming venues in Atlantic City.

Officials within Atlantic City are currently studying the impact of this new deal. There’s a chance that several properties will need to be sold here in order to comply with the commission’s regulations. Eventually, the FTC will also need to approve this deal.

Caesars Entertainment is still an extremely powerful gambling corporation. Hopefully, this new sponsorship deal with the MLS helps to bring even more exposure to this company.

Stay tuned for updates on this situation over the next few months!

Caesars-Eldorado Merger Deal Pending New Jersey’s Approval

Ariel View of Atlantic CityThe $17.3 billion merger between Caesars Entertainment Corp. and Eldorado Resorts Inc. is still dependent on approval from 14 state regulatory agencies and the Federal Trade Commission, including New Jersey.

So far, four state regulatory bodies have approved of the merger, including Pennsylvania, Louisiana, Iowa and Illinois.

The merger will grant Eldorado Resorts control of close to 60 casinos in the country. While no explicit deadline for New Jersey regulators to make an approval decision on the merger decision has been set, gaming operators expect a deal finalization within the first half of 2020.

One reason New Jersey could be delaying approval are concerns they’ve cited over the economic concentration the deal would cause in the state, and Atlantic City turning into something of a monopoly.

Dan Heneghan, former public information officer for the Casino Control Commission (now retired) and former casino beat reporter for The Press of Atlantic City, said state gaming regulators are “concerned about economic concentration in the casino industry for many of the same reasons that the (federal) Justice Department is concerned about monopolies in industry in general.”

“If you have a monopoly, or something close to a monopoly, there’s always the concern that the big player can effectively set prices,” Heneghan said.

Back in September, Caesars Entertainment and Eldorado Resorts presented a joint petition to NJ regulators, and stated their intentions of providing an economic analysis that would disprove their merger would cause an undue economic concentration.

New Jersey and Atlantic City Play Major Role in Deal

Since the newly formed company will control nearly half of the resort’s casinos (four out of the nine total casinos), New Jersey and AC will play a major role in the deal. Under its current designations, the company merger will employ 40% of casino industry workers in Atlantic City and represent almost 37% of their total gaming revenue.

Currently, Caesars Entertainment has three outstanding deed restrictions on former casino properties. Those include the former Atlantic Club Casino Hotel, the Claridge Hotel and the Showboat Hotel Atlantic City. These restrictions disallow them to operate as gaming parlors and adds some stress to the current deal.

The Attorney General’s Office, who advised that New Jersey gaming regulators would also be retaining an expert, said this in an email:

“As required by law, the Division is responsible for ensuring the honesty, integrity and financial stability of casino licensees. Part of this process is analyzing the economic impact of casino acquisitions such as the Eldorado / Caesars merger. As part of this process the Division has retained an economic expert to assist with the review of this merger.”

About the Caesars-Eldorado Merger Deal

Eldorado Resorts $17.3 billion acquisition of Caesars Entertainment is slated to become the world’s largest casino operator in terms of gaming assets. To acquire 51% of Caesars, Eldorado will pay $7.2 billion in cash and 77 million shares of stock, as well as taking on Caesars’ existing debt.

Upon regulatory approval, Caesars will merge with Eldorado subsidiary Colt Merger Sub Inc and a new, wholly owned Eldorado subsidiary will exist and operate under the Caesars name.

Three More States Approve Eldorado Resorts’ New Merger

Back in June, officials within Eldorado Resorts announced that the company had agreed to formally merge with Caesars Entertainment. It’s the largest merger between casino companies in history. This week, three more states officially approved Eldorado Resorts’ new merger.Eldorado Resorts Logo

The process to combine these two companies was expected to take a long time. A huge number of states need to give permission for the two operators to join forces. Today, we’re going to look at what still needs to happen for these companies to merge.

Let’s get started!

Why Did Eldorado Resorts Purchase Caesars Entertainment?

Eldorado Resorts is one of the biggest and most successful casino companies in the world right now. It was founded in 1973 in Reno, Nevada. Over the years, it’s expanded across the country. Eldorado Resorts now operates 23 properties across 11 different states.

Since 2013, this company has worked hard to acquire new properties. First, it agreed to merge with MTR Gaming Group. In 2015, the company purchased Circus Circus Reno and a 50% stake in Silver Legacy from MGM Resorts International for $73 million.

In 2017, Eldorado acquired the Isle of Capri Casinos for an astounding $1.7 billion. Over the next few years, this Reno-based casino operator continued to purchase properties. By March of 2019, rumors began to surface that Eldorado was going to purchase Caesars Entertainment.

The timing of this deal made sense. Caesars Entertainment had fallen into debt and was looking for a way to turn things around. By June, Eldorado revealed that it was purchasing the fellow Nevada-based company for an astounding $17 billion. The goal of this deal is to help Eldorado expand its presence across the country.

A deal of this magnitude can’t be completed in a day, though. A huge number of state gambling commissions need to ensure that this will not create a monopoly-like situation. Fortunately, this process of approval is moving along smoothly.

Three States Approve Eldorado Resorts’ New Merger

Ever since June, Eldorado Resorts has been seeking approval from various state gambling commissions. It’s already received approval from many major states yet there’s still a long way to go before this merger is finalized. This week, three additional states announced they have approved Eldorado Resorts’ new merger.

The commissions in Louisiana, Pennsylvania, and Illinois all gave this deal the green light. The Louisiana approval is particularly exciting, as the company will soon operate several new gambling venues in the state. There are still some important states that are holding out, though.

Approval in New Jersey will be extremely important. Officials within Atlantic City have raised concerns over the impact that this deal will have on other casinos in the city. With that being said, it seems unlikely that this state’s gambling commission will choose not to approve the new merger.

Nevada is another important state that has yet to formally approve this deal. Based on the way things are moving, the merger between Eldorado Resorts and Caesars Entertainment will be completed by mid-2020. The Federal Trade Commission still needs to agree to it, as well.

Eldorado Resorts’ new merger will create the single largest casino company in the United States. It will be extremely interesting to watch this deal progress over the next couple of months.

Major Las Vegas Property Sales Continue

There have certainly been some major changes to the US casino industry lately. Of course, not every company is looking to merge with others. Several huge casino operators have instead looked at property sales as a way to generate additional revenue.

This is especially true with MGM Resorts International. The Las Vegas-based company has recently sold several of its biggest and most profitable casino-resorts in Las Vegas. The first came back in October when MGM sold both The Bellagio and Circus Circus. The sale of The Bellagio earned the company more than $4 billion, making it the biggest in Las Vegas history.

A few months later, MGM Resorts announced that it was selling the Mandalay Bay Hotel-Casino.

Not all of these sales aren’t exactly what they appear, though. MGM has chosen to lease back several properties and retains control of its operations. It’s currently paying $245 million per year to keep operating The Bellagio.

Depending on how successful Eldorado Resorts’ new merger with Caesars Entertainment is, more companies may choose to take a similar approach. For now, several casino companies are simply choosing to part with their venues as a way to earn more revenue.

There is a lot happening in the US casino industry. Stay tuned for more updates over the next few months!

Harrah’s Reno Will Transform Into Reno City Center

Hotel-Casinos in Downtown RenoReno’s historic Harrah’s hotel-casino was recently sold for $50 million by VICI Properties and Caesars Entertainment to Las Vegas-based real estate group CAI Investments, after being a landmark presence in the Northern Nevada city for nearly 83 years.

Harrah’s Reno first opened in 1937. It was founded by William F. “Bill” Harrah and originally a small bingo parlor and casino. Harrah was a successful entrepreneur in the United States, and Harrah’s Reno was the company’s first establishment. Today, the Harrah’s chain has 17 casinos in 11 different states. Four of them are located in Nevada, with Harrah’s properties in Laughlin, Reno, Las Vegas, and Lake Tahoe.

There are plans to renovate and update the long-established casino into a mixed non-gambling property in downtown Reno. Eventually, this area will be known as the Reno City Center.

Plans for the New Reno City Center

The remodeled property will feature about 530 market-rate apartments, 150,000 square feet of new office space, and 78,500 square feet of retail. Some of the planned stores include dining options such as a grocery star, a bar, a coffee shop, and even a few restaurants.

The Reno City Center will also feature a fitness center. There are plans to accommodate other recreational activities as well. According to CAI, there may be areas to walk around, similar to a park-like structure. Plans also factor in the east tower but remain fluid, CAI told the Reno Gazette Journal.

“The goal with the property is to offer much-needed housing, office and services to the downtown Reno market — all of which are instrumental in the continued diversification of the Reno economy”, said CAI Investments CEO Chris Beavor.

“Fulfilling these needs are especially important if Reno wants to continue attracting new businesses and employees to the region.”

The plans for this update is for the new infrastructure to be versatile. They plan to host plenty of easy and fun options on-site. The idea is for future residents to be able to take the elevator down from their apartment and have a walking distance commute at any of the offices. Then, they can take another walk down the river or head over to the gym. And it could all take place within the very same building.

Services are also planned to be a la carte, giving renters the options to pick and choose which services they want to utilize and pay for, be it parking, the gym, or pet-friendly lodging features. Apartments will be offered as one and two bedroom configurations, priced at market rate.

Estimated Timeline for Completion

Beavor hopes to have the Harrah’s Reno refresh done within 30 months after Caesars’ lease finishes later this year. Gryphon Private Wealth Management and CAI will be working together for the Reno City Center project.

The City Center also aimsto open at the same time as CAI’s 20-story boutique hotel project that will be located on Court Street. The boutique hotel project will be built from the ground up, unlike Harrah’s reboot.

Beaver is a Reno native. Hopefully, the two projects will add substantial value, bring traffic, and garner more attention toward downtown Reno.

“If you think of Reno in terms of a baseball match, we’re just right now at the top of the third,” Beavor said.

“Everyone in Reno has done a great job in the last 10 to 15 years with the downtown regional plan. Our next push into the fourth inning is to help improve the repositioning of downtown.”

 

Louisiana Gaming Control Board Approves Proposed Caesars-Eldorado Merger

Eldorado-CasinoOn Friday, the Louisiana Gaming Control Board officially approved the proposed merger between Caesars Entertainment Corp. and Eldorado Resorts. While the board gave the $17.3 billion deal the thumbs-up, the regulator also criticized Eldorado for lacking in its efforts to upgrade its Baton Rouge casino.

Members of Eldorado’s brass made an appearance in front of the Louisiana Gaming Control Board on Thursday with hopes of helping the merger’s chances of being approved. Getting approval in all states in which Eldorado and Caesars operate is a necessary step for both to go forward with the proposed deal. The lucrative pact was officially announced in June of 2019, and industry experts believe the merger will close sometime in the middle of this year.

Louisiana Board Grills Eldorado Executives

Ronnie Jones, the Chairman of the Louisiana Gaming Control Board, asked Eldorado CEO Tom Reeg whether he and his team “were up to the task to make sure that you spread attention to all of the properties in all states in which you operate.” Jones cited the fact that Eldorado’s Belle of Baton Rouge Casino and Hotel has struggled to meet its financial goals over the past few years and that the lack of renovations is to blame.

Jones also made a note of the fact that Reeg and the rest of Eldorado’s representatives in attendance for Thursday’s meeting did not even stay at the Belle property. Instead, they stayed at L’Auberge Casino Hotel, which is owned by competitor Gaming and Leisure Properties.

Eldorado has invested only $1.1 million since acquiring the Belle, with most of the money going toward refurbishing and upgrading slot machines and gambling equipment. However, Reeg and Eldorado formally pledged to invest quite a bit in the riverboat casino property in the years ahead.

Eldorado Pledges Millions to Louisiana Properties

Reeg said that he and his group “understand that asset in its current state is not acceptable to the state and is not acceptable to us either.” He added that the “situation will be different” the next time they appear before the board. Eldorado subsequently pledged to spend over $500 million in Louisiana over the next 4 years, with $325 million of that money going toward overhauling Harrah’s New Orleans. Harrah’s is operated by Caesars.

Another $110 million will be put toward moving the Isle of Capri Casino Lake Charles onto land. The same will be done to the Belle of Baton Rouge. That process will involve moving the riverboat into a nearby atrium that had previously housed a shopping mall.

More Regulatory Challenges Ahead

Shareholders for Eldorado and Caesars both approved the proposed merger in November of 2019. Louisiana was the second regulator to officially vote on the merger after Missouri voted in December, and there are 12 more states that need to do the same before the deal will close.

Reeg said last summer that he would expect the deal to close some time in the first quarter of 2020, but that is looking unlikely at this stage. At the time, Reeg said,

“We’re still targeting a first half of 2020 closing date. If I were to place a bet today, I’d be betting on a first quarter close versus a second quarter close. But we’re going through the regulatory and antitrust in real time.”

Shareholders from Eldorado and Caesars were both over 99 percent in favor of the deal. Eldorado’s stockholders additionally approved a measure to reincorporate Eldorado from Nevada to Delaware following the merger’s closing later this year. Eldorado is set to pay over $7 billion in cash with 77 million shares of stock in order to acquire 51 percent of the new company. Eldorado will also take on Caesars’ existing debts.

Once all regulatory hurdles are cleared, the new company will own 60 casinos with 51,000 hotel rooms, 71,000 slot machines and 3,650 table games across the United States.

$24 Million Room Renovations at Harrah’s AC Are Set to Begin

Atlantic City has grown to become one of the country’s top gambling destinations. It’s home to several popular casino-resorts, including Harrah’s. This week, company officials announced an incredible $24 million plan for room renovations at Harrah’s AC. Harrah's Atlantic City Casino

It’s exciting news for fans of this hotel. Many have called for renovations over the past few years. Today, we’re going to talk about what will be changing here. We’ll also look at how the city is performing heading into 2020.

Let’s get into it!

Atlantic City’s Revenue Surges in Q3 of 2019

About a decade ago, Atlantic City was struggling to generate any money. The recession had taken a massive toll on the casinos operating in the city. Very few individuals were gambling here and as a result, many of the hotel-casinos were forced to permanently close their doors.

Things have completely changed over the past few years. Now, Atlantic City is one of the country’s top gambling destinations. It’s attracting visitors from around the country and most of the hotel-casinos here are now highly profitable.

For most of the year, gambling revenue has increased here. This was especially true in 2019’s Q3. Over those three months, gross profit from the city’s casinos increased to $26.5 million. This represents a massive 12.5% increase from the same period in 2018.

Borgata Casino continues to generate the most money here. In Q3, it earned $210,141,863. That’s more than double what the second-highest earner in the city, Hard Rock Atlantic City, brought in.

Harrah’s Atlantic City stands as a middle-of-the-pack casino in terms of revenue. This week, owners of this property announced a massive new renovation project.

Room Renovations at Harrah’s AC Will Soon Begin

Harrah’s Atlantic City first opened to the public in 1980. Since that time, the hotel-casino has undergone several renovation projects. Unfortunately, improving the conditions of the rooms hasn’t been a major focus point for the owners.

This week, officials in the company announced an incredible $24 million project. The money will go towards room renovations at Harrah’s AC. 416 of the rooms in the hotel’s Marina Tower will be redesigned and upgraded.

The project comes alongside a massive $300 million investment project by Caesars Entertainment, which controls Harrah’s. Ron Baumann, regional president of Caesars, recently commented on the renovation project to the media.

“We are thrilled to introduce our new Laguna Tower to our guests in 2020, which will complete over $86 million in upgrades to our rooms and suites within the last three years,” he said. 

If all goes according to plan, these plans will be completed in the early part of 2020. Hopefully, the room renovations at Harrah’s AC help to bring in more gamblers and increase the casino’s revenue.

Sports Betting Revenue Continues to Grow in Atlantic City

New Jersey was instrumental in getting the Supreme Court to strike down PASPA. Immediately after this decision, sports betting became legal throughout the state. Today, each of the casinos in Atlantic City operates both land-based and online sportsbooks.

Since becoming legal, sports betting revenue in the city has increased. Many of the casinos here are now working to improve their sportsbooks.

In September, Both Caesars Entertainment and MGM Resorts International opened brand new sportsbooks in the city. Caesars opened its new sportsbook inside Bally’s. It’s more than 15,000 square feet and features one of the biggest sports screens in the city.

MGM opened its new Atlantic City sportsbook in the Borgata.

The $24 million room renovations at Harrah’s AC are expected to be fantastic. We’ll need to wait a few months to see exactly what comes here.

Stay tuned for more Atlantic City casino news over the next few months!

Caesar Entertainment’s Sale of the LV Rio Hotel Casino is Complete

In September, Caesars Entertainment announced it was selling the LV Rio Hotel Casino in Las Vegas, Nevada. Obviously, a deal of this magnitude takes months to complete. This week, the Rio’s sale was officially completed.

LV Rio Hotel Casino

This company is looking to earn as much money as possible right now. It’s set to merge with Eldorado Resorts in 2020. Here’s what the Rio sale means for Caesars moving forward.

Caesars Entertainment Posts Solid Q3 Revenue Figures

Caesars Entertainment is having an interesting year. In March, news surfaced that the company was in talks to merge with Eldorado Resorts. In June, the company officially accepted Eldorado’s offer to be acquired for an astounding $17.3 billion.

This deal is taking quite a while to complete. Before the companies can merge, they both need approval from various gambling commissions around the country. This is taking much longer than initially expected.

Fortunately, Caesars is continuing to perform well this year. New reports indicate that the company generated serious revenue earnings in 2019’s third-quarter. From July to September, It generated $2.24 billion.

Despite an operating and net loss, Caesars Entertainment still managed to see a profit gain of $110 million. The majority of this money came from Las Vegas. Revenue from the city increased by 7% last quarter to $973 million.

One way that Caesars is generating revenue is from selling property. Earlier this year, the company announced it was putting the LV Rio Hotel Casino up for sale. This week, the sale was finally completed.

Caesars Entertainment Completes Sale of LV Rio Hotel Casino

Property sales are becoming a common trend in Las Vegas. Several of the biggest casino operators in the city are beginning to sell some of their most valuable venues. MGM Resorts International, for example, recently sold both Circus Circus and The Bellagio.

In September, Caesars announced that it was selling the LV Rio Hotel Casino. The company claimed it was being purchased for $516.3 million. This week, the sale of this hotel-casino was finally wrapped up.

According to an official press release, the venue has been purchased by Dreamscape Companies, owned by Eric Birnbaum. Under the terms of this agreement, Caesars will continue to operate the LV Rio Hotel Casino for the next two years and will pay an annual rent of $45 million.

For now, the Rio will stay under the Caesars Rewards program. This may end once the company’s lease expires. The 2020 World Series of Poker will also continue to be held here during this time.

The completion of this sale comes at a great time for Caesars Entertainment. Hopefully, it helps to speed up the merger with Eldorado Resorts.

Missouri Approves Eldorado Resorts-Caesars Entertainment Merger

The merger between Eldorado Resorts and Caesars Entertainment is the biggest ever made between two casino companies. Unsurprisingly, this deal is taking months to complete. Before the companies can officially join together, they need approval from the 17 gambling commissions that they both operate here.

This week, members of Missouri’s gambling commission officially gave their approval for the merger. Both Caesars and Eldorado Resorts operate gambling venues here.

More states are likely to give their approval of the deal soon, as well. Tom Reeg, CEO of Eldorado Resorts, feels confident that the merger will be completed during 2020’s first half.

The LV Rio Hotel Casino has officially been sold. Caesars is likely to put more of its Las Vegas venues up for sale in the next few months.

Stay tuned for more updates on the situation over the next few months!